S&P gives A to Cigna notes

S&P said it assigned an A debt rating to Cigna Corp.'s proposed 10- and 30-year senior unsecured note issuances totaling roughly $1.6 billion. The 10-year notes are due in 2027 and the 30-year notes are due in 2047.

As per the prospectus, the notes will rank equally with all of Cigna's future senior unsecured and unsubordinated debt and senior to all future subordinated debt.

“Our ratings on Cigna reflect the company's very strong business and financial risk profiles. The company's strong business fundamentals are supported by its national and international footprint, top-tier profitability among peers, and business diversification,” S&P said in a news release.

“Its conservative financial risk measures projected for 2017-2018 – including AAA capital redundancy, financial leverage of 30%-40%, and EBITDA fixed-charge coverage above 10x – also support the ratings.”

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